Dear Members and Friends,
It is with great pleasure that I
am writing this third newsletter of 2015 as, by the time you get to read this,
we will be well into the second quarter of the year. With Q1-2015 behind us, I
am sure that you will all agree that it was a rather challenging one to say the
least, as trading conditions around the globe made sure that we were kept on
our toes for pretty much most of the time.
As we all know, Emerging Markets
have had a rough start to 2015, with the continuing appreciation of the dollar
(negatively affecting those countries that have got a portion of their debt
denominated in US dollars), declining price of oil and overall declining demand
in global growth, most notably from China and Russia. However, recent dovish comments
from the US Federal Reserve’s Chairwoman Janet Yellen may herald a deceleration
in dollar gains, particularly against Emerging Market
Currencies.
Global concerns about weak
inflation continue to make headlines, with more than 20 central banks having
eased policy so far this year, many in surprise moves. Lower inflation due to
commodity-price weakness is having differential effects on oil importers and
exporters. A number of countries and regions have posted stronger-than-expected
growth (the Eurozone, for example), but there have been more disappointments
(US, China, Brazil) than positive surprises. It is imperative therefore to
appreciate that, all-in-all, monetary policy is loose (or easing) in most
countries with the ultimate aim of stimulating global growth and propping up
inflation and inflationary expectations.
As we have communicated in our
previous newsletters, the ITFA Board is working hard to continue to grow the
depth and knowledge of expertise within the Association, by attracting new members
from a wide array of regions and lines of business. To this effect, we can
comfortably and proudly say that each month we are welcoming 3-4 new institutions,
on average; quite a feat as more international players are appreciating the
benefits of forming part of an Association such as ours.
On a different note, our
Association has once again been invited to take part in a survey carried out
as a joint initiative between ITFA and the Asian Development Bank (ADB).
The survey can be accessed by clicking here. Whilst we
thank you in advance for taking the time to reply to this survey, please
do not hesitate to contact your Regional Committee's chair person or directly
to Sean Edwards (sean_edwards@gb.smbcgroup.com)
or Lorna Pillow (info@itfa.org)
via email.
As highlighted above, the
challenging market conditions for Emerging Market economies in 2015 are taking
its toll on Emerging Markets, with this topic expected to be one of the main
points of discussion at the ITFA 42nd Annual Conference which will be held in
Dubai at the Jumeirah Beach Hotel, between the 28th and the 30th of September. Rest
assured that the ITFA team will leave no stone unturned in ensuring that this
much awaited event will turn out to be a great success…we thank you for your
constant support! So please…save the date!
As always, we look forward to
hearing from you with any feedback you may want to share with us by sending an
email to myself, any of the Board Members or to our general email, info@itfa.org.
Best wishes
Paolo Provera
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